Here are the FOUR Key Points to summarize the Klang Valley Office Market conditions:
#1 Market Indicators
👉🏻 Bank Negara Malaysia (BNM) projects the country’s 2020 GDP growth to be between -2.0% and 0.5% amid the ongoing crisis (2019 GDP: 4.3%).
👉🏻 Most analysts predict that the economy will start to show improvements moving into 2H2020 with recovery by the end of 2021.
👉🏻 The unemployment rate, which stood at 3.3% in 2019, is expected to hit 4.0% this year, higher than during the Global Financial Crisis (GFC) in 2009 and Asian Financial Crisis 1998 (AFC) at 3.7% and 3.2% respectively.
#2 Government Initiatives - PRIHATIN Package for Small Medium Enterprises (SMEs)
⭐ Zero Interest Rate for micro credit schemes with BSN or TEKUN Nasional.
⭐ Auto Moratorium for submission of statutory documents to SSM for 30 days from the last date of MCO.
⭐ Wage Subsidy ranging from RM600 to RM1,200 per month per employee (depending on company size & current earnings)
#3 Office Market Outlook
🏢 Subdued Demand and Further Pressure on Rental of physical office spaces
🏢 Delays in Upcoming Supply with an estimated 4.23 million sq ft of office space scheduled to be completed by the end of 2020.
🏢 Overall occupancy of co-working spaces may decline in the short term as SMEs may struggle to overcome the economic downturn.
#4 Looking Beyond MCO & Covid-19
🤞🏻 Flexibility and Agility in allowing employees to work closer to their homes and in a conducive environment.
🤞🏻 Digital Adoption of Video Conferencing & cloud-based servers to make organization-level remote working possible
🤞🏻 Outsourcing With Shared Services Outsourcing (SSO) and Business Processing Outsourcing (BPO) to save overheads
⭐⭐⭐ "IT WILL PASS & WE WILL THRIVE" ⭐⭐⭐
